SBF!

SBF!

by | 2023/12/13 | Current Affairs, International News

SBF!

I am surprised that more has not been written in Irish about Sam Bankman-Fried, who is known as SBF for short, and who is one of the worst fraudsters ever! As that is a significant oversight, here is my attempt to correct that problem!

Who is SBF?

Sam Bankman-Fried was born in California in the United States to two Stanford Law School professors in 1992. After attending secondary school in California, he graduated in physics and mathematics from the Massachusetts Institute of Technology in 2014.

He started his career in 2013 as an intern at Jane Street Capital – a trading firm with expertise in exchange traded funds – where he got his first work experience. He went to work full-time with the same company after graduating. In November 2017, he co-founded the quantitative trading firm Alameda Research with Tara Mac Aulay of the Center for Effective Altruism, where he briefly worked as director of development. Effective altruism, founded by two philosophers at the University of Oxford in 2009, is a philosophy in which people earn as much money as they can, so that they can donate more money to charity. That philosophy had a great influence on SBF, especially after he met their co-founder, William MacAskill. MacAskill is said to have convinced the brilliant mathematician SBF to maximize his influence by taking a high-paying job and giving away a large portion of it. It was because of this that SBF chose a permanent position with Jane Street Capital on Wall Street. He donated half his salary to charity while he was there.

Sa bhliain 2019, bhunaigh SBF an malartú cryptea-airgeadra darb ainm FTX.  Bhog Bankman-Fried ceanncheathrú a dhá chomhlacht go dtí na Bahámaí ag deireadh 2021 agus bhog sé é féin agus roinnt dá bhaill fhoirne isteach in árasán dín a cheannaigh sé ar $35 milliún. Faoin am seo, bhí SBF ar cheann de na daoine ba shaibhre ar domhan, agus an ceann ba shaibhre níb óige ná tríocha agus glanfhiúchas $26.5 billiún aige! Bhí luacháil FTX timpeall $40 billiún ag an am.  

Sins of SBF!!

In 2019, SBF founded the cryptocurrency exchange called FTX. Bankman-Fried moved the headquarters of his two companies to the Bahamas at the end of 2021 and moved himself and some of his staff into a penthouse he bought for $35 million. By this time, SBF was one of the richest people in the world, and the richest under thirty with a net worth of $26.5 billion! FTX was valued at around $40 billion at the time.

No other customer was allowed to maintain a negative balance. That negative balance meant that Alameda would be able to borrow FTX customers' money, without the knowledge of those same customers.

SBF and FTX also gave Alameda another advantage. FTX fulfilled any trade submitted by Alameda faster than other customers. That gave Alameda a big advantage, because in that business, time is money!

SBF also received personal loan money from Alameda – about $1 billion! And he borrowed $2.3 billion for his company 'Paper Bird'! FTX employees Nishad Singh ($542 million) and Ryan Salame ($55 million) also borrowed money from Alameda.

Also, SBF and FTX created their own cryptocurrency, named FTT. They kept most of it as collateral in FTX and when Alameda borrowed from FTX, often FTT tokens were used. Because FTX and Alameda had the majority of FTT tokens, FTT did not have a real exchange rate, as neither FTX nor Alameda would be able to sell many FTT tokens, without reducing the same rate. Therefore, FTT's token holdings were not realistic collateral, especially if they had to sell those holdings!

Catastrophic failure!

In November, 2022, the site 'Coindesk' published a report claiming that Alameda was heavily dependent on FTT. Therefore, the company Binance, which competed with FTX, and had a fair amount of FTT tokens, said that they were going to sell them all. That started the panic sale of FTT, and its value fell badly. FTX was short of money, and Alameda was unable to repay what they had borrowed from them. FTX was missing $8 billion and had to declare bankruptcy.

SBF was arrested in the Bahamas and extradited to the United States. He was accused of seven criminal charges, including electronic fraud and money laundering. He was found guilty of all charges. Other FTX and Alameda employees were also arrested, including Caroline Ellison. Those employees testified against SBF, so that they would receive leniency in their own cases.

Conclusion!

This is a foreboding story, no doubt. SBF may have started out full of good intentions, trying to practice 'effective altruism' to help others. But before long, all that was visible was his selfish predation. And finally, as always happens, the whole thing fell apart. SBF will be back in court next March, when he could be sentenced to up to a hundred years in prison.

A little verse to conclude:

The decline of the SBF empire

The world laid low and the wind blew like a dust,

Bankman-Fried, Ellison, and their co-conspirators;

FTX is grass; and look at how it stands with Alameda,

SBF will wake up in a prison cell every day.

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Todhchaí an Mheánoirthir – Idir dhá cheann na meá!

The future of the Middle East - conflicted!

by | 2023/11/07 | Current Affairs, International News

Todhchaí an Mheánoirthir – Idir dhá cheann na meá!

The Israeli government was in a panic, after the recent horror when Palestinian militants attacked Israel. At the time of writing, more than 1,400 have been killed in Israel and more than 8,000 have been killed in Gaza since the conflict began on October 7. The Israelis had a choice between two tough options: launch a major invasion of Hamas in Gaza, guns blazing; or take a more prudent, measured approach.

Background

Most Palestinians live in the occupied Palestinian territories. The Israelis captured those territories in the six-day war in 1967. The Golan Heights were captured from Syria, the Gaza Strip and the Sinai Peninsula from Egypt, and the West Bank and Jerusalem from Jordan. Israel returned the Sinai Peninsula to Egypt in 1982. They pulled out of the Gaza Strip in 2005. For decades, Palestinians have been racially discriminated against in the occupied territories. The most horrific thing is the illegal settlements in the West Bank and East Jerusalem. From 2012 to 2022, the number of Israeli residents in the West Bank and East Jerusalem increased from 520,000 to over 700,000. These settlers are living illegally (according to international law) in 279 Israeli settlements throughout the West Bank, with 14 of them and 229,000 inhabitants in East Jerusalem. 147 of the settlements are outposts, which are illegal even under Israeli law.

Israel's efforts to expand Jewish settlements in the West Bank have intensified this year, reflecting the agenda of the right-wing government in Israel and prompting international criticism of a practice that violates international law.

The Palestinians say the settlements are encroaching on territories that will one day be part of their own state. The settlements also create a two-tier legal system in the territory – one set of rules for Israelis and another for Palestinians who live under military rule.

The Israeli approach creates a lot of tension between the Palestinians and the Israelis, and especially when the Israeli government is ignoring the Palestinians and their demands to have their own country.

Response to the Hamas Attack

The Israeli defense forces (IDF) have launched a ground invasion. Israeli Prime Minister Benjamin Netanyahu said “We are only at the beginning of the war against Hamas. What we do to our enemies in the coming days will hurt them deeply for generations to come."

Immediately after the Hamas attacks, Israeli forces have been carrying out continuous airstrikes on Gaza and the people of the area are lacking food, water and medical supplies. A ground invasion is underway but not much news is coming out, as the communications systems in Gaza were destroyed as part of the attack. It is very unfortunate that Israel did not follow the advice of the experts.

Advice from couple of experts

A couple of Middle East experts I respect have offered their suggestions. Thomas Friedman is an award-winning journalist for the 'New York Times' - including three Pulitzer Prizes! Here are a few words he recently wrote about what's going on in the Middle East, referring to President Biden's visit to Israel:

"I admire how President Joe Biden has used his compassion and physical presence in Israel to convince Israelis that they are not alone in their war against Hamas, while at the same time extended a hand to moderate Palestinians. Biden strongly urged the Israeli leadership to pause and to think about the next three steps forward – not only what they should do in the Gaza Strip to destroy Hamas, but also what should be done next to achieve peace and political stability.”

Yuval Noah Hariri is a historian, Professor of history at the Hebrew University of Jerusalem and a famous writer (who wrote 'Sapiens' and 'Homo Deus'). Here are a few words from him:

“The Israeli government says it wants to disarm Hamas, and it has every right to do so to protect its citizens. The disarmament of Hamas is also crucial for any chance of peace because, otherwise, as long as they remain armed, Hamas will be able to prevent that. Even if Israel succeeds in doing so, that is only a military achievement, not a political plan. In the short term, does Israel have any plans to salvage the peace deal between Israel and Saudi Arabia? In the long term, does Israel have any plans to achieve a comprehensive peace with the Palestinians and to normalize its relations with the world?”

Conclusion

The Israeli government went against the advice of the aforementioned experts, who were saying that this is the time for it to show unprecedented self-discipline. Hamas was expecting a fierce and violent response from Israel, which has happened and will end any chance for Israel to form alliances with Arab countries in the region. No doubt, Iran is happy to see that, with Israel stuck in an endless war.

It would be better to devise a new and more targeted approach against Hamas as soon as possible, and protect innocent people in the Gaza Strip. As part of that strategy, it would be necessary to stop building settlements in the West Bank and East Jerusalem immediately. These proposals are unlikely to happen today or tomorrow, and in the meantime innocent civilians will be slaughtered in droves.

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Plus ça change…

Plus ça change…

by | 2023/10/17 | Current Affairs, International News, National News

Plus ça change…

The more things change the more they stay the same, or as they say in French: "Plus ça change, plus c'est la même chose!" Although that statement is true in the sense that human nature does not change, it is not true in the way that changes are happening now that have never been seen before. Exceptional crises are underway now and we cannot take the chance of failing to find solutions to them. For example, global warming is taking place, due to atmospheric pollution, and we can no longer ignore that problem. Often, changes, both good and bad, start in one place, and then spread to other places. Global warming started primarily in the United States with the proliferation of cars, and then as other countries became richer, they followed suit.

In the article I wrote last week, I toured back memory lane, remembering a few criticisms that my mother expressed to me on her first trip to California. She was absolutely right about the problems she focused my attention on, and her keen insight has stayed with me ever since. The amazing thing about that is that most of the same problems happened in Ireland later, starting in the reign of the Celtic Tiger and continuing to the present day. I well remember the bar man in "Tynan's Bridge House Bar" - he may have been the owner- telling me when he heard I was living in California, "We only take the good stuff from the United States, son!” I didn't have a sharp answer on the tip of my tongue, but now I have the answer. "Keep dreaming, son!" If I were to meet that guy again, I would have a lot to say to him and I would recommend he read this article! Anyway, here are a few examples of the problems that I first saw in America, but which can be seen in Ireland today.

Housing Crisis

As strange as it may seem, it is true that there are certain problems that become worse when countries become richer. The housing crisis is one of them. When countries become richer, house prices increase. Between 1996 and 2006, prices in Ireland quadrupled! The country was then divided between the rich and the poor, on the basis of home ownership. Buying a new home has not been easy for people and especially first time buyers. Sometimes, they could not afford to buy a house at all, and therefore, they were left homeless and had to sleep on the streets.

Poverty and Immigration

Up until the time of the Celtic Tiger, the Irish used to migrate in waves with every bad economic recession in the country. Not many wanted to come into the country. Things changed completely with the arrival of the Tiger, and the waves began to move in the other direction – into the country, including refugees and asylum seekers, many of whom were destined to spend years in Direct Provision Centres. Many people also landed from other countries in the European Union, looking for work. Those numbers put a lot of pressure on the country's infrastructure, which wasn't very good in the first place. Housing matters became worse, and the Health Service Executive was also under additional pressure.

Health Care

Everyone knows that the Health Services Executive (HSE) has big problems. It is a shame that the hospitals are always overcrowded and have been so for a long time, with no viable solution yet in sight. A few months ago, there were around 85,000 people waiting for inpatient beds and almost 500,000 people waiting for an appointment at the outpatient clinic!

Drug Epidemic

Everyone has seen the headline recently: "Cocaine worth €157 million in 'biggest drug bust in state history'". The drugs came from cartels in South America and organized crime gangs from Ireland and Britain came together to share and distribute the drugs, some of them in Ireland. There is a big cocaine problem in Ireland now - even in the Gaeltacht. This is a headline in a recent tuairisc.ie article: "50-year-old man arrested and €105,000 worth of cocaine found by Gardaí". Those are just a few examples, but without a doubt people have the money to buy the cocaine, and this problem is not only in the cities, but throughout the country.

Violence and Guns

Compared to the United States, there is not a big problem with guns or violence. But it is necessary to keep a close eye on it, because the murder rate doubled last year.

Conclusion

I think certain problems arise in rich countries. There are still those who deny that we are a rich country, but I read in 'Forbes Magazine' recently that Ireland is the richest country per person, in the world! The United States is only in 9th place!!!

Unfortunately, to my knowledge, our government has not done much for a long time to address the above mentioned problems. But big changes are coming in the political sphere and Mary Lou McDonald and Sinn Féin are well-positioned coming into the next general election. If they are elected, they may be able to take a step forward, in terms of those big problems. Failing that, one day guns will be readily available in this country too!

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Trioblóid ar Neamh!

Trouble in Heaven!

by | 2023/10/10 | Current Affairs, International News, Personal

Trouble in Heaven!

A long time ago, when my father had just retired from his job at Kieran’s College, my parents came to visit us here in California, for three weeks. We drove along the coast, from Los Angeles to San Francisco, and through many places along the way. Both of them were surprised because what they saw in California did not match their preconceptions. We were all impressed by the beauty and diversity of the landscapes that could be seen throughout the length of the State. My parents were also surprised at how friendly and well-mannered all the people we met were. They don't complain about the Mediterranean climate, either.

While their trip got rid of most of their worries about where we were staying, it also gave them a few new worries, or at least a few questions.

Homeless People

When we were walking in the heart of Los Angeles, we had to walk on the road sometimes, because there were homeless people lying on the sidewalk. We couldn't not see them. When we were safe and sound at home again, drinking a cup of tea, my mother asked me: “Why are there homeless people here? It makes no sense. Ours is not a rich country, but you wouldn't find many homeless people there. What's going on?" "There are no strong social policies in America," was my reply, "unlike in Ireland! And housing prices are also very high in this country, so it's hard to buy a house!” But I had to admit that it was a strange thing!

Poverty and Immigration

Another time, we crossed the international border into Tijuana in Mexico. Mexico was and still is, a very poor country. Rubbish was everywhere, and many half-finished buildings could be seen. There were only a few paved roads to be seen, and it was mostly dirt roads. All you saw on the road was an old jumble of cars and trucks falling apart. There weren't many shops or restaurants in the city, either. My parents were stunned. They thought they themselves grew up in a poor country, but after seeing the poverty of Tijuana, they realized that they were never as poor as people in third world countries. When my mother noticed how easy it was for us to come back across the border to America, when it was very difficult for Mexican citizens to do the same, she asked me another question. “Those poor people are in dire need of help. Why wouldn't the richest country help the people of the neighboring country ?" Her question stuck with me, because there was a complicated subject to discuss - immigration control. I said that I didn't know much about immigration policy in the United States, but that it was a difficult process to enter the country legally, and it was expensive to do it. The American officials were concerned about letting any Mexicans into the country, for fear that they would stay there illegally, and millions of people were already living in America without permission.

Health Care

Another time, when we were talking together at lunch, the topic of health care came up. My parents couldn't believe how expensive it was to go to the doctor, or to the hospital. But when my mother heard that you would be sent home from the hospital as quickly as possible, without any time for you to recover, she was furious. "What kind of medical system is that - it's cruel and too expensive - aren't we lucky enough to live in Ireland!" I made a weak attempt to defend the medical system, saying that you need to have health insurance, and then things weren't too bad. But you need to have a job to qualify for health insurance. “But what about the unemployed? What can they do if they get sick?” My mother’s question disoriented me, and I had no answer.

Drug Epidemic

Bhí eipidéim chócaoin ag réabadh na Stát Aontaithe ag an am sin, agus níorbh fhéidir an teilifís a chur ar siúl gan cloisteáil faoi ar an nuacht. “Cén fáth atá fadhbanna drugaí chomh mór sin ar siúl i Meiriceá, agus gach saghas duine ag mí-úsáid drugaí, ní hamháin daoine bochta éadóchasacha?” Arís, bhí mé sáinnithe ag mo mháthair!

Violence and Guns

Horrific mass shootings used to happen in the United States almost every day (and, unfortunately, still do), and my mother told me that it was much more dangerous in many parts of America than in Northern Ireland itself, where a war was going on at that time. She didn't even have to ask me, in that case, because she knew there was no answer to that insanity!

Maybe she was trying to lure me back to Ireland and she made a strong case, but I had no intention of doing that because, to tell the truth, things were going well for us and it would therefore difficult to return home. But my mother's questions have stayed with me ever since and are more important today than ever. My parents would be disappointed to learn that many of the aforementioned problems have now come to Ireland. I'll have more to say about that next week!

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Tuairisc ó Mheiriceá – ‘Déjà Vu’?

Report from America -‘Déjà Vu’

by | 2023/09/27 | Current Affairs, International News

Report from America -‘Déjà Vu’

The Presidential election will take place in the United States next year. In all likelihood, the same candidates will be chosen as there were last time - Donald Trump and Joe Biden. If such a thing happens, it is difficult to say who would win this time. They are trying to promote themselves shamelessly but at the same time, the two candidates are bitter enemies. You would think that the emphasis would be on the important issues that would have a major impact on the people of the country.

The economy is the biggest issue on the American people's radar regarding the country's future. After that, they worry about the health care system and immigration control. But the media is not focused on those big issues, unfortunately. It would be appropriate for them to pay attention to these questions, analyze them, and develop recommendations based on their research. But they don't seem to care, because they're making a big deal out of other things altogether.

Maybe the media is right about Donald Trump, because everyone knows that it is Donald Trump himself and everything he does that always attracts the public's attention - we saw that even when he was in office as President. It is the things he said or joked about that exploded on the media almost every day. Despite that, he also did things that his fans really liked, no doubt. Lowering taxes has been a Republican objective, and Trump has succeeded in doing so. Trump has also had a major impact on the nation's highest court. He appointed three Supreme Court justices – Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett – the most in nearly 40 years. You would think that the illegal things, the undemocratic things he did could whitewash him. But Trump's image is as strong now as it was before the ongoing lawsuits and even before the 2021 Rebellion. His followers remain very loyal to Trump, and they believe everything he says – including that he has not lost the presidential election in 2020. Trump is a political exception, no doubt!

As for Biden, he has been doing pretty well as President so far, with a few exceptions. He signed three landmark Bills to spend $2 trillion over the next ten years on his Party's (Democrats) key priorities, such as massive infrastructure renewal, clean energy research, environmental protection, semiconductor research and development and STEM investment (Science, Technology, Engineering and Mathematics). He started rebuilding the North Atlantic Treaty Organization (NATO), which was very important when Russia invaded Ukraine last year. Biden has repaired most of the damage Trump has done to the United States' international reputation, although much more remains to be done. Biden is also working hard to rebuild public confidence in the United States' democratic system. So, President Biden has done a lot of positive things at home and internationally.

Biden became an object of derision when he messed up the withdrawal from Afghanistan. Undoubtedly, there were great similarities between that operation and what happened in the early seventies in Saigon.

Pattern of slander!

But the emphasis is not on the above-mentioned important things they did or on the things they promise to the American people in the future. Instead, the candidates and the media are focusing public attention on their smear campaigns against each other. Usually, one criticism, whether true or not, can hurt a candidate so much that he or she often loses the race as a result. For example, in 2016, Hilary Clinton was heavily criticized for the private email server she used for government business emails. Or maybe you remember the controversy over Barack Obama's birth certificate in 2012!

This round, the biggest concern of the American public about Joe Biden, including Democrats, is his age! It would be better to emphasize what he has done as president so far, and what he intends to do if he is elected for a second term. His age is a red herring. Although Donald Trump is only three years younger than Joe Biden, there is not much talk about his age at all. By the way, Trump, as the President of America, would be able to do a lot of damage to democracy in America and around the globe, no matter what age he is!

It's time for the American public to focus on the real issues, and ignore the hype being spread in the media. The future of democracy itself depends on that, and they cannot afford to have Donald Trump as president again, regardless of the age of the candidates. Trump would start out as president, perhaps, but he would finish his term as a dictator, no doubt. Americans cannot afford to be complacent now, when such an important decision about their system of government is in their own hands!

Tuairisc ó Mheiriceá – Teorainn Fiachais!

Report from America - Debt Ceiling!

by | 2023/05/31 | Current Affairs, International News, Politics, Opinion

Report from America - Debt Ceiling!

When the United States Congress put a policy in place regarding the national debt limit long ago, they never intended it to be used as a political bone of contention. But that is exactly what happened! And on account of that, there is great uncertainty about the economic situation in the United States and around the world.

The national debt

Every year, the United States government has to borrow to meet its commitments. There are three spending streams in the country's budget:

Compulsory spending: The government is obliged to pay for social security, health care and retirement pensions for people who are entitled to them by law, including people over 65 and military veterans. The government would have to change the laws to reduce this expenditure. These programs are very popular with the majority of the public, so it would be controversial and politically difficult to make such changes. Compulsory spending is the largest part (63%) of the national budget.

Discretionary spending: Each year, the government (the Appropriations Committee) has to review this spending and then approve it. Half of this spending goes to the American military, and the other half to various programs such as: homeland security, education, transportation, research, food safety, science and space programs, disaster relief, environmental protection, public housing, and enforcement of the federal law. Discretionary spending uses around 30% of the national budget.

Supplementary expenditure: This expenditure (7% of the budget) is used to pay interest on the national debt each year. In the year 2023, it will cost 460 billion dollars to service the debt.

Debt Ceiling

Like many countries, the United States has to borrow money, because the federal government spends more money than it receives. Unlike almost every other country, the government limits the amount of money they are allowed to borrow. Because the annual budget deficit is increasing almost every year, congress has to raise the ceiling frequently. You'd think the government wouldn't be able to spend more money (than the ceiling) in the next budget, and that would be that – wouldn't you? Unfortunately, it's not that easy.

A long time ago, the government had to approve the expenditure associated with each bill, one by one. Therefore, the debt limit was first established in 1917 and with a few changes in 1939, so that the limit applied to the budget as a whole. This was done to make the process simpler and that was all very well until 1995 when unintended consequences occurred that no one had thought of before. I will come back to that point but I have to explain one thing first. The debt limit applies to the past year and the money already spent! That is the fundamental mistake with that approach, because this system can be abused, with one party demanding certain changes to the budget in return for raising the ceiling. Without a new ceiling, the government would not be able to pay the interest on the national loan, and the country would be in default and in trouble.

Things were not like that until Republican Chairman Newt Gingrich started using the debt limit as a weapon in 1995. He said that a new ceiling would not be passed until President Clinton made certain changes in the budget. Although Gingrich eventually backed down, he had done the damage and established the precedent.

Flash forward to today, and you will see Gingrich's legacy clearly! Speaker of the House Kevin McCarthy is using the debt limit as a bargaining chip to demand a major reduction in the new budget.

Russian Roulette!

The Republican Party is playing Russian Roulette, and that is a dangerous game. Without a new debt limit, a global financial crisis would be created. That is an unacceptable risk, without question. Therefore, it is high time for the United States congress to put in place a new strategy and a new system to balance the budget. Let's hope they do the right thing. Otherwise, that debt limit will cause us to lose sleep!

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